The bankruptcy process is governed by the Bankruptcy and Insolvency Act.
Once the process has started, you will receive protection from your creditors, and wage garnishments, lawsuits and any collections against you will stop.
During the process you will have to complete certain duties, and meet with your trustee for two credit counselling sessions.
A meeting of creditors is rarely called when a person goes bankrupt.
Unsecured creditors are only impacted by going bankrupt, as secured debts are not discharged.
Secured creditors will still have to be paid if you wish to keep your house, vehicle or other secured debts.
As such, debts such as credit cards, personal loans, payday loan and income taxes can be included in your insolvency filing, but secured debt such as mortgage debt, alimony and child support cannot.
Bankruptcy proceedings can be over in as little as 9 months and you will have the ability to begin your fresh start once you have been discharged from your case.
Bankruptcy Canada is here to help you with all of your debt relief needs.